CFO: Divoll-Sutton brings transparency to Team San Jose

When Janette Divoll-Sutton took on the role of chief financial officer at Team San Jose, the organization’s finances were “a complete mess,” according to CEO Bill Sherry.

There had been a revolving door of CFOs and the turnover had left the finances “in incredibly poor shape,” Sherry noted.

When the nonprofit was initially created in 2004 it was designed as a unique partnership that unified the San Jose Convention and Visitors Bureau, hotels, arts, labor and tourism. Today, the organization manages the San Jose McEnery Convention Center and arts and entertainment venues including the California Theatre, the Center for the Performing Arts, Montgomery Theater, Parkside Hall, San Jose Civic and South Hall. Divoll-

Sutton manages over $30 million in revenue at Team San Jose, which averages $18-$19 million in operating revenues, $6 million in Transient Occupancy Taxes and $2 million in parking revenue each year.

As the noprofit’s responsibilities grew along with its budget, TSJ’s relationship with the city became less of a partnership, which left city officials questioning the accuracy of the financial information and why the nonprofit was landing in the red. The relationship became so contentious by the end of 2010 that council members were ready to end TSJ’s management contract with the city.

Enter Divoll-Sutton.

After spending more than two decades working in the Las Vegas gaming industry, Divoll-Sutton spent nearly one year working for a nonprofit called Opportunity Village that helped put mentally disabled adults to work.

When the opportunity with Team San Jose came up in mid-2010, Divoll-Sutton was working for a company called Warner Gaming that managed mostly tribal casinos outside of Las Vegas.

Two weeks after she started, Team San Jose received a notice of default from the city.

“It was like a shocker moment,” Divoll-Sutton recalls. “Like what had I gotten myself into?”

But she was determined to stick it out, seeing potential in the organization’s mission – despite having two other job offers come in from Oklahoma and Michigan.

“I believe in what the convention center does for San Jose and in helping keep people employed,” she said.

Get on the same page

The city’s biggest gripe was the nonprofits dancing around the issues and its lack of transparency. Council members wanted accurate accounting and a clear understanding why the nonprofit was bleeding funds. Divoll-Sutton knew she had to make that happen.

It took about five months but Divoll-Sutton was able to restructure the nonprofit’s financial statements so that the city could see where it stood.

“It made us much more transparent and everything clearer, which in turn made the city more comfortable,” she said.

To achieve this, Divoll-Sutton said she had to make it clear to staff that Team San Jose was not only partners with the city, but that the city was its client, and she put together a five-year plan for organization.

“I had to work really hard to make sure they understood that we work for the city by managing the convention center on their behalf,” she said. “With the city saying we were not managing it properly, we risked losing that contract, which would have closed our organization.”

For CEO Sherry, Divoll-Sutton’s work has been nothing short of extraordinary.

“I am just utterly shocked at how quickly she was able to get in, decipher the information, correct it, disseminate it and get everyone from the city finance department, the budgeting office, city manager’s office and our board of directors and administration to understand it,” he said.

The end result has been a complete turnaround for TSJ and it’s relationship with the city.

Because of Divoll-Sutton’s work, Team San Jose’s credibility and respect in the city’s eyes “skyrocketed,” according to Sherry.

“She did an absolutely amazing job,” he said.

She focused on making sure every dollar Team San Jose spent was to its best advantage. As a result, for 2011, the organization used $2 million less than budgeted from its transient occupancy tax funds. With the extra money, Team San Jose was able to allocate more funds toward furniture and fixtures as it renovates the convention center.

In her own words:

First job:

My first job as an adult was to work for the city of Amarillo, Texas, as a clerk in the Police Department.

Something about you that would surprise others:

I am part of a Desert Race Team, “Desert Pirates.” My husband and friends will be racing in the Baja 1000 desert race November 2012 in Baja Mexico, and I will be chasing in the truck, bringing tools and parts from pit to pit.